MOTOR SERVICE FARES

Taranaki Daily News, 16 February 1933, Page 4

MOTOR SERVICE FARES

NO INCREASE FOR PRESENT EFFECTS OF PETROL TAX RISE. LICENSING SITTINGS AWAITED.. Fears have been expressed that the rise in the price of petrol will ■ mean increased fares on motor services. This cannot happen yet because fares have been fixed by. the transport licensing authorities and may not be changed. The authorities sit annually about March and it is possible some revision of fares may then be made. Until March, however, bus service companies will have to bear the additional cost of benzine. That this will not be light is shown by the fact that a company which operates at New Plymouth uses 3000 gallons a month.

Altogether it is estimated that the imposition of an additional Customs duty on benzine, Of sales tax on oil, tyres and all the many accessories necessary, together with the cumulative effect of the increase in the exchange rate, will advance the costs of motor services by 2b per cent. On account of the uncertainty still existing it is not known what the. increase in the price of oil will be. The wholesalers are still considering the position and. though they have not decided definitely what the increase in the price is to be it is stated that it will probably be about 8d a gallon. Oil is a much less important consideration than benzine but even so it will contribute to the higher cost of motoring in the future.

No action has yet been taken by motor service proprietors at New Plymouth in connection with the rise of prices and their inability to raise fares in view of the approaching sittings of the licensing committees, but a conference is expected to be held at Wellington shortly at which proprietors in the district vzill be represented and at which combined action, if any, will be decided upon.